1. IntroductionSince the 1980s the situation in the civil aviation sector has changed radically and, although the government still maintains some form of indirect control over the aviation sector and the "former" national airlines in particular, issues related to economization and efficiency of business Companies take the lead in dictating the strategic and operational decisions of airline operators. This change in the approach to regulating the aviation sector around the world has also greatly influenced issues relating to the organization of the workforce in this sector, especially in the Western world. In this report, the change in the approach to employee relations will be discussed based on the case of one of the largest airlines in the world - British Airways. A brief environmental analysis will be presented with particular attention to the implications that the changed political, economic, industrial, legislative, social and technical conditions have had on relationships with employees. Further indications of progress will be explored within the employee relations strategy which relates to building the 'new model' of workplace arrangements around partnership, employee engagement, training and upskilling .2. Environmental AnalysisVarious macro- and micro-environmental factors have influenced the way in which the British aviation industry and in particular British Airways organize their business operations today. This in turn has strong implications for how the company approaches workforce organisation. This section will present the main environmental forces that are constantly changing: political, economic, industrial, legal, social and technological issues (The Times, 2010).2.1. Political and legal factors... half of the document... The Observer, last accessed: http://www.guardian.co.uk/business/2010/jan/31/ba-cost-cuts -cabin-crewOffice of National Statistics 2010 Economy, last access: http://www.statistics.gov.uk/hub/business-energy/index.html Purcell J., (1987), Mapping management Styles in Employee Relations, Journal of Management Studies, Vol 24, No5.Rose, E. (2008) (3rd edition). Employment Relations, London: Prentice Hall.Telegraph.co.uk, (2008), “Heathrow Terminal 5: British Airways to cancel flights all week.” Last accessed: http://www.telegraph.co.uk/news/uknews/1583288/Heathrow-Terminal-5-British-Airways-to-cancel-flights-all-week.htmlThe Times, April 2009The Times, August 2010The Times, December 2010The Times, September 2011The Times, (2010), SLEPT Analysis, last accessed: http://www.thetimes100.co.uk/theory/theory--slept-analysis--235.php